The investigation agency has determined that VND200 billion ($8.8 million) out of the VND600 billion ($26.4 million) Vu “Nhom” used to purchase Dong A Bank shares existed only on falsified documents by Tran Phuong Binh.

Tran Phuong Binh and Phan Van Anh Vu worked together to cause a loss of $8.8 million to Dong A Bank

The investigation agency under the Ministry of Public Security (MoPS) has just announced the conclusions to transfer the case of ‘intentionally violating regulations on lending’ at Dong A Bank (DAB) to the Supreme People’s Procuracy of Vietnam to prosecute Tran Phuong Binh (former general director of Dong A Bank) and 20 others.

The agency also confirmed that Binh’s violations involved Phan Van Anh Vu (also known as Vu “Nhom”), who will be persecuted for deliberately disclosing state secrets, tax avoidance, and abusing his position and authority.

Using DAB’s money to purchasing DAB stocks

Newswire Tuoitre cited the investigation conclusion, which identifies numerous violations committed by Tran Phuong Binh. Accordingly, he forged documents over a payment of VND200 billion ($8.8 million) for Phan Van Anh Vu (former chairman of Bac Nam 79 Construction JSC) to buy DAB shares five years ago.

At the time, while Dong A Bank was in the red, Binh proposed to rise the bank’s charter capital from VND5 trillion ($220.3 million) to VND6 trillion ($264.3 million). At the end of 2013, Binh and Vu “Nhom” agreed that Vu would buy 60 million DAB shares with the total value of VND600 billion ($26.4 million).

Vu “Nhom” mortgaged his land holding in Danang city to collect VND400 billion ($17.6 million) from Dong A Bank, then used this amount to purchase DAB stocks. The remaining amount was paid by the bank as per Binh’s instructions, after which Vu signed fake documents showing that he had already paid the VND200 billion ($8.8 million) to Dong A Bank.

Due to the unsuccessful raising of charter capital, in April 2014, Binh directed the bank to return the VND600 billion ($26.4 million) to Vu “Nhom”. Vu said that he would pay back the VND200 billion ($8.8 million) acquired by falsified documents to Dong A Bank when he sold the land in Danang.

Then Vu “Nhom” bought 50 million DAB shares from four shareholders at the price of VND500 billion ($220 million). In August 2015, Vu continued to purchase an additional 13 million DAB shares at the price of VND136 billion ($6 million) but he only paid VND46 billion ($2 million) of this.

The investigation conclusions stated that Binh caused the loss of VND200 billion ($8.8 million) for DAB, and Phan Van Anh Vu was complicit to his crimes. Thereby, Vu “Nhom” has to return VND200 billion ($8.8 million) to DAB, and relevant agencies will investigate and prosecute him later.

Vu “Nhom” got $13.4 million from Binh

According to newswire Tuoitre, Vu has changed his declaration. He said Binh used Vu’s name to buy DAB shares. He signed the false documents and purchased VND500 billion worth of shares in accordance with the directions of DAB’s former general.

Binh claimed that from October 2012 to March 2015, he exchanged Dong A Bank's money into $13.9 million, including $13.4 million of Vu “Nhom,” equivalent to VND284 billion, while the remaining $500,000 was spent to find partners.

Vu “Nhom” also confirmed to ask Binh to exchange $3.2 million. Additionally, Vu borrowed a total of $10.2 million from Binh, but he has yet to return it. The investigation agency said that Vu “Nhom” received $13.4 million from Binh, which he will need to pay back.

On January 4, MoPS took defendant Phan Van Anh Vu into custody after he was deported from Singapore. On January 2, 2018, the Immigration and Checkpoints Authority of Singapore announced that Phan Van Anh Vu was arrested on December 28, 2017 for committing offences under the Immigration Act.

Earlier on December 21, 2017, MoPS issued an arrest warrant because Vu was absent from his house at 82 Tran Quoc Toan Street, Hai Chau 1 Ward, Hai Chau district, Danang since December 20, 2017. He was accused of "deliberately disclosing state secrets; appropriating, trading in and/or destroying state secret documents," according to Article 263 of the Penal Code (1999).

VIR